The PPG Price Trend moved strongly upward during Q2 2026, with prices increasing across major markets in Asia, Europe, North America, and other importing regions. Polypropylene Glycol (PPG) is an important industrial chemical used in polyurethane foam, sealants, lubricants, coatings, and several other applications.
During the quarter, higher Propylene Oxide costs, tighter supply, shipping difficulties, and geopolitical uncertainty created strong upward pressure on the market. Buyers also became more cautious and started purchasing material earlier than usual to avoid possible shortages.
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PPG Price Trend Overview for Q2 2026
The second quarter of 2026 was a period of significant movement in the global PPG market. PPG Prices increased sharply in most of the major markets during April and May. The strongest gains were seen in India, South Korea, the USA, Germany, Australia, and Saudi Arabia.
The main reason behind this increase was the higher cost of Propylene Oxide, which is an important raw material used in the production of Polypropylene Glycol. When the cost of this feedstock increases, producers generally face higher production costs. These higher costs eventually move through the supply chain and affect PPG prices.
Supply conditions also played an important role. Raw material transportation became more difficult because of geopolitical tensions and disruptions to shipping routes. Higher freight costs and longer delivery times made buyers more concerned about availability.
As a result, many manufacturers and distributors started buying material earlier. This defensive procurement added another layer of support to the market and kept the PPG Price Trend firmly positive through much of the quarter.
What Happened to PPG Prices During April and May?
April and May were the strongest months for the global PPG market during Q2 2026. Prices moved upward across most major producing and importing locations.
The market was influenced by a combination of higher feedstock costs and concerns about supply. Buyers in industries such as polyurethane foam, sealants, and lubricants needed to maintain regular production, so they were less willing to wait for prices to fall.
This created a situation where buyers were purchasing ahead of their normal requirements. Such buying behavior can quickly tighten the available spot supply, especially when producers are already facing higher production and logistics costs.
The result was a broadly synchronized increase in PPG prices across different regions.
PPG Price Chart Shows Broad Upward Movement
The PPG Price Chart for Q2 2026 showed a clear upward direction during April and May. Although the size of the increase differed between countries, the overall market movement was similar.
South Korea recorded a 50% increase compared with the previous quarter's average on an FOB basis. India recorded an even stronger 52% increase on a CIF basis. Thailand increased by 34%, while Australia recorded a 46% rise.
Germany and Saudi Arabia both recorded increases of 47%, while Turkey saw a 43% increase. The USA also recorded a 50% rise compared with the previous quarter's average.
These numbers show how widely the cost pressure spread across the international PPG market.
However, the PPG Price Chart also showed a change toward the end of the quarter. June was more mixed than April and May. Prices eased in several markets as Propylene Oxide availability improved and geopolitical pressure started to calm. At the same time, the USA and Australia continued to see modest increases.
South Korea PPG Market
South Korea experienced one of the strongest increases during Q2 2026. PPG prices increased by 50% compared with the previous quarter's average on an FOB Busan basis.
Higher Propylene Oxide costs were the main driver. Supply concerns and transportation problems added further pressure. Producers serving polyurethane foam, sealant, and lubricant manufacturers saw active demand during the quarter.
In June, the market began to stabilize. PPG prices declined by around 1% from May's average as Propylene Oxide became more available and freight pressure eased.
Thailand PPG Market
Thailand recorded a 34% increase in PPG prices compared with the previous quarter's average on an FOB Laem Chabang basis.
The increase was supported by higher Propylene Oxide costs and difficulties in raw material logistics. Buyers remained active because they were concerned about future availability.
June brought some relief, with prices declining by around 1% from May's average. Better raw material availability and calmer logistics helped the market move toward a more stable position.
India PPG Market
India recorded the sharpest increase among the markets discussed, with PPG prices rising 52% over the previous quarter's average on a CIF Nhava Sheva basis.
Higher Propylene Oxide costs and shipping disruptions contributed strongly to the increase. Indian buyers serving polyurethane foam, sealant, and lubricant industries also purchased material earlier to protect their inventories.
This defensive buying helped maintain the upward PPG Price Trend for most of Q2.
By June, however, prices eased by about 1% from May's average. Improved Propylene Oxide availability and lower freight pressure helped reduce some of the market's earlier tension.
Australia PPG Market
Australia's PPG market increased by 46% compared with the previous quarter's average on a CIF Melbourne basis.
Shipping disruptions and higher Propylene Oxide costs affected the market, while buyers remained focused on securing adequate supplies. Demand from polyurethane foam, sealant, and lubricant producers provided additional support.
Unlike several other markets, Australia continued to see some upward movement in June. Prices increased by around 1% from May's average because feedstock costs remained elevated and industrial demand stayed steady.
Germany PPG Market
Germany recorded a 47% increase compared with the previous quarter's average on a CIF Hamburg basis.
The European market faced higher Propylene Oxide costs along with transportation and supply chain challenges. German manufacturers responded by purchasing material earlier to reduce the risk of production interruptions.
The market started to calm in June. PPG prices declined by around 0.5% from May's average as supply conditions improved and freight costs became less pressured.
Saudi Arabia PPG Market
Saudi Arabia also recorded a 47% increase in PPG prices compared with the previous quarter's average on a CIF Jeddah basis.
Higher Propylene Oxide costs, regional shipping problems, and tighter supply conditions supported the increase. Buyers responded by bringing forward procurement to protect their inventories.
By June, prices declined by approximately 0.5% from May's average. Improved material flows and easing geopolitical pressure helped the market stabilize.
Turkey PPG Market
Turkey's PPG prices increased by 43% over the previous quarter's average on a CIF Mersin basis.
Higher feedstock costs and shipping difficulties were important factors behind the increase. Buyers also became more active because of concerns about future availability.
In June, PPG prices declined by approximately 1% from May's average as Propylene Oxide availability improved and freight pressure eased.
USA PPG Market
The USA recorded a 50% increase in PPG prices compared with the previous quarter's average on a CIF Houston basis.
The market was supported by higher Propylene Oxide costs, supply concerns, and shipping disruptions. Buyers in polyurethane foam, sealant, and lubricant industries purchased material earlier to reduce the risk of shortages.
The USA was one of the markets where the upward momentum continued into June. PPG prices increased by around 1% from May's average as feedstock costs remained high and industrial demand stayed firm.
PPG Price Index During Q2 2026
The PPG Price Index remained at elevated levels during Q2 2026. The index reflected the broad increase in market prices across different regions.
One important feature of the quarter was that the increase was not caused by a single factor. Instead, several market conditions worked together. Higher Propylene Oxide prices raised production costs, while supply concerns and transportation problems limited the flexibility of buyers and sellers.
Demand from polyurethane foam, sealant, and lubricant industries also remained steady. These applications are important consumers of PPG, so regular industrial demand helped support the market even when freight conditions started improving toward the end of the quarter.
PPG Price Forecast
Looking ahead, the PPG Price Forecast will depend heavily on feedstock costs, supply availability, freight conditions, and industrial demand.
If Propylene Oxide prices remain elevated, PPG producers may continue to face high production costs. This could keep PPG prices firm. On the other hand, if feedstock availability improves further and shipping conditions normalize, some of the price pressure seen during Q2 could gradually reduce.
The purchasing behavior of buyers will also be important. After a period of defensive procurement, some buyers may become less aggressive if they feel comfortable about inventory levels. This could reduce short-term demand and create some room for price stabilization.
However, strong demand from polyurethane foam, sealants, lubricants, and related industrial applications could limit any major decline.
Therefore, the near-term outlook appears closely linked to the balance between improving supply conditions and continued feedstock and industrial cost pressure.
Conclusion
The PPG Price Trend during Q2 2026 was clearly upward across most major global markets. India, South Korea, and the USA recorded increases of around 50% or more, while Germany, Australia, Saudi Arabia, and Turkey also experienced substantial gains. Thailand recorded a comparatively smaller but still significant increase.
Higher Propylene Oxide costs were the biggest common factor behind the market increase. Supply concerns, geopolitical tensions, higher freight costs, and disrupted logistics added further pressure. At the same time, steady demand from polyurethane foam, sealant, and lubricant industries encouraged buyers to secure material early.
June showed the first signs of normalization in several markets, with prices easing as feedstock availability improved and freight conditions became less difficult. Still, the USA and Australia continued to record modest gains.
Overall, the Q2 2026 market demonstrates how quickly PPG Prices can respond when feedstock costs, supply availability, logistics, and buyer behavior move in the same direction. Monitoring the PPG Price Chart, PPG Price Index, and changing supply-demand conditions will remain important for buyers, sellers, manufacturers, and traders looking to understand future PPG market movements.
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About Price Watch™ AI
Price-Watch™ is an independent raw material price reporting agency that provides real-time price forecasts and data-driven insights into global raw material markets. Price-Watch™ specializes in tracking raw material prices, analyzing market trends. and delivering timely updates on plant shutdowns, supply disruptions, capacity expansions, and demand-supply dynamics. The Price-Watch™ platform empowers manufacturers, traders, and procurement professionals to make faster, smarter decisions. Leveraging AI-powered forecasting and over a decade of historical data, Price-Watch™ transforms market volatility into actionable opportunity.
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